Share-based compensation

Amended and Restated Stock Incentive Plan — We award restricted share awards and grant qualified incentive and nonqualified stock options to our salaried officers, non-employee directors, and other key employees from our Amended and Restated Stock Incentive Plan (the "Stock Incentive Plan"). The Stock Incentive Plan has 10,000,000 shares authorized for issuance with approximately 6,900,000 shares remaining at December 31, 2014. Our share-based compensation consists of service-based (time vested) and performance share awards that typically vest over a period of three years from the date of grant, provided that the recipient is still our employee at the time of vesting. Our independent non-employee directors receive annual grants of service-based share awards that vest following 12 months of service. In the past, we have granted stock options that have a term of 10 years and typically vest one-third on the grant date and an additional one-third on the first and second anniversary dates of the grant. Our most recent grant of stock options was in 2009.

As of December 31, 2014, options to purchase 544,171 shares of common stock and 464,485 service-based share awards were outstanding.

We also grant annual long-term incentive awards under our Amended and Restated Long-Term Incentive Plan (the "LTIP"). The LTIP is designed to align compensation with the interests of our stockholders by linking compensation to share price appreciation and total stockholder return over a multi-year period. We provide two types of LTIP awards: time-vested performance share units and performance units.

Time-vested performance share units are stock-settled awards (which do not contain any performance-based vesting requirements) that are granted at the beginning of the performance period. Performance units are generally cash-settled awards (although the Board of Directors retains the discretion to settle these awards in stock) and vest based on the achievement of pre-determined performance metrics, subject to the discretion of the Board. As of December 31, 2014, we recorded a performance unit liability for approximately $6,251. Both the performance units and time-vested performance share units vest, in their entirety, after three years.

A summary of activity under our Stock Incentive Plan during the year ended December 31, 2014 is presented below:



Options	Number		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2014	619,833		$	24.77
Exercised	(61,495	)	6.55
Forfeited/expired	(14,167	)	23.76
Outstanding, fully vested and exercisable at December 31, 2014 (1)	544,171		$	26.85	2.78	$	3,794


(1)	As the result of actions in 2011 that were determined to be a "change of control" under the Stock Incentive Plan, all options will remain exercisable for their respective remaining term, regardless of whether the awardees remain employees of Century.



Service-based share awards
Outstanding at January 1, 2014	442,737
Granted	258,662
Vested	(200,965	)
Forfeited	(35,949	)
Outstanding at December 31, 2014	464,485



	Year ended December 31,
	2014		2013		2012
Weighted average per share fair value of service-based share grants	$	15.31	$	8.19	$	8.14
Total intrinsic value of option exercises	1,011		13		—

Fair Value Measurement of Share-Based Compensation Awards – We estimate the fair value of each stock option award using the Black-Scholes model on the date of grant. We have not granted any stock options since 2009. For our service-based awards, the fair value of our service-based awards is equal to the closing stock price on the date of grant. Other assumptions to estimate the fair value have no impact on the fair value of the service-based award. If we grant stock options in future periods, we will disclose the relevant assumptions used in the Black-Scholes model to estimate their fair value.

The following table summarizes the compensation cost recognized for the years ended December 31, 2014, 2013 and 2012 for all options, service-based share and performance-based share awards. No share-based compensation cost was capitalized during these periods and there were no significant modifications (other than the accelerated vesting in 2011 described above) of any share-based awards in 2014, 2013 and 2012.



	Year ended December 31,
	2014		2013		2012
Share-based compensation expense reported:
Performance-based share expense	$	1,090	$	475	$	27
Service-based share expense	244		603		586
Stock option expense	—		—		—
Total share-based compensation expense before income tax	1,334		1,078		613
Income tax	—		—		—
Total share-based compensation expense, net of income tax	$	1,334	$	1,078	$	613

As of December 31, 2014, we had unrecognized compensation expense of $1,826 before taxes. This expense will be recognized over a weighted average period of 1.00 years.